Ghana’s trade attractiveness has sharply declined, plummeting from third to seventh place among African nations, according to the latest edition of the Standard Bank Africa Trade Barometer (SB ATB). This significant drop underscores the mounting economic pressures the country faces, primarily stemming from a deteriorating macroeconomic environment and diminishing trade confidence.
The SB ATB report indicates that Ghana’s waning trade competitiveness raises serious concerns regarding its capacity to sustain growth in the face of ongoing economic volatility. “As economic conditions worsen, Ghana’s ability to facilitate seamless trade has come under strain,” the report notes. This is particularly detrimental for small and medium-sized enterprises (SMEs), which have increasingly struggled to access foreign currency—especially US dollars—necessary for import payments and cross-border activities.
Philip Myburgh, Group Head of Trade at Standard Bank Business and Commercial Banking, stated, “As Africa progresses towards greater integration under the African Continental Free Trade Area (AfCFTA), the SB ATB provides vital insights into the evolving opportunities and challenges faced by businesses across the continent.” The report highlights shifts in macroeconomic conditions, infrastructure deficits, and access to finance that are collectively impacting the trade landscape of the ten countries assessed.
Among the ten nations featured, Ghana’s fall in ranking is part of a broader trend. While Ghana’s trade attractiveness deteriorated, countries such as Tanzania (rising to fourth from eighth) and Mozambique (advancing to third from fourth) recorded notable improvements. Uganda and Kenya, conversely, also experienced declines, illustrating a dynamic and shifting trade environment.
The SB ATB evaluates trade conditions across seven thematic categories, including trade openness, macroeconomic stability, and governance. This comprehensive framework aims to address the critical information gap regarding reliable African trade data, essential for promoting intra-African trade growth.
Despite projected real GDP growth of 4.3% for 2025, Ghana grapples with persistent challenges, including high inflation—expected to reach 9.9% in 2024—driven by currency depreciation and exacerbated by adverse weather events.
As the continent seeks sustainable economic growth amid these complexities, Standard Bank stresses the need for prudent economic management and diversified growth strategies. “The SB ATB serves as a strategic tool for businesses to navigate the evolving trade landscape and foster sustainable economic development across Africa,” Myburgh added, underscoring the bank’s commitment to supporting the growth of the continent’s dynamic economies.
Source:norvanreports.com